Profile picture for gdoshi

What does "Contact Acceptance" vs "Contract Approval" mean

I am considering putting an offer on a short sale so the banks are obviously involved. Does Contact acceptance in this case mean when the seller has accepted the contact or when the contact has been accepted by the bank? Further what is a fair number of days to get 3rd party approval in a short sale.

Thanks.
  • July 31 2014 - Annapolis
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Answers (1)

Profile picture for craigfial

It's good that you are aware there is a difference, and that the seller can only execute 1 Contract on the sale of their home for submission to the lender.

Contract Acceptance is the date when the sellers agrees to enter into contract for the sale conditional on the lenders approval.  Beware there is NO guarantee the seller's lender(s) will agree to your terms or conditions, and the bank may impose financial obligations on the seller that they may not want to enter into. 
The Mortgage Debt Forgiveness Act expired and sellers are on the hook for taxes.  Short-Sales do not make much sense for sellers anymore and just benefit the banks.

  • July 31 2014
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